What Is a Trading Session?
Let me explain what a trading session really means. It's essentially the active period on a single business day in a financial market, from the opening bell to the closing bell. Whether you're dealing with forex, futures, stocks, or bonds, each has its own setup that defines the session. Keep in mind that these hours differ across countries because of time zones.
How a Trading Session Works
You need to know that trading session hours vary depending on the asset class and the country. For U.S. stocks, the regular session starts at 9:30 a.m. and ends at 4:00 p.m. Eastern Time on weekdays, excluding holidays. This is largely based on the New York Stock Exchange's schedule, which sometimes closes early at 1:00 p.m. ET around holidays.
For the U.S. bond market, the session runs from 8:00 a.m. to 5:00 p.m. ET on weekdays. Futures markets have their own hours, which depend on the specific exchange and commodity.
I advise you to check the trading session hours for any securities or derivatives you're interested in ahead of time to avoid surprises. Beyond regular hours, some markets offer pre-market or after-hours sessions, and others even run 24 hours.
Pre-Market and After-Hours Trading Sessions
If you're considering trading outside normal hours, pre-market for U.S. stocks is from 4:00 a.m. to 9:30 a.m. ET on weekdays, and after-hours goes from 4:00 p.m. to 8:00 p.m. ET, though times can vary by exchange.
This can be a way to react to news that breaks outside regular hours, but you should be aware of the risks. The SEC highlights several: you might not see quotes from all networks, liquidity is lower leading to wider spreads and harder executions, prices can be more volatile, after-hours prices may not match regular session prices, many systems prefer limit orders, you're competing with pros who have better info, and technical support might be limited causing delays.
24-Hour Trading Sessions
Some markets operate around the clock, like the global forex market where currencies are traded. It's the largest and most liquid market out there, with no physical exchange—just banks and firms trading directly. The forex market runs 24 hours a day, five days a week, starting Sunday evening and closing Friday night.
You can refer to charts of forex sessions in GMT to see the overlaps, such as major sessions for different regions.
Regular Trading Sessions Around the World
Globally, trading sessions overlap across time zones, especially in foreign exchanges. The world's largest stock exchanges, grouped by continent, each have their own hours based on local time, contributing to a network of overlapping sessions.
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